Basis of Umbrella Insurance Rates

[Leigh Ann Smith]

We have a quote for dwelling insurance for a SFR on which we are about to make an offer. It's with the insurer of last resort in Texas. I'm not sure that's the proper terminology; my husband is handling that part of it. This insurer does not offer liability insurance, so I am looking into umbrella policies or other liability insurance.

What will the rate for umbrella insurance be based on, and will it be linked specifically to this SFR? If we acquire more properties, will our premium increase? Thanks!

[Derek Lacy]

Eric is correct. Think of an umbrella as a liability policy that goes over other liability policies.

What is needed is a General Liability or personal liability policy.

It will be based on the home and any renovations. It's much cheaper to bundle the coverage. A better question is why the FAIR plan? (Last resort). Should be an insurer willing to write.